Professional Documents
Culture Documents
Top Automobile Companies in India
Top Automobile Companies in India
Starting from the era when there was too slim of a variety of cars available in Indian
market, Indian automobile industry has come up a long way to have a diverse array of cars
these days. There are a number of top automobile companies running their operations in
India, which again have a range of models in different segments of cars. However, while
looking for top 10 automobile companies in India, one name that would always lead the list is
Maruti Suzuki India. Maruti Suzuki has consistently been the dominant leader in the Indian
automobile industry. However, there are also other big names like Tata Motors, Mahindra
and Mahindra, Hyundai Motors, Hindustan Motors etc.
During its early days, the most of the Indian car auto manufacturers banked upon
foreign technologies. But the scenario has changed over the years and currently, the Indian
auto manufacturers are using their own technology. Due to the growing pace of Indian
automobile market, a number of car manufacturers including the global leaders have locked
their horns in the Indian auto market.
After the recent setback due to the global recession, the Indian automobile market has
again started to grow up. Though the auto sales except commercial vehicles started creeping
up since the beginning of this financial year, it's only the month of September 2009 when the
market saw buoyant sales. It fuelled optimism in the industry. The retail trade also started
soaring up. The auto sales saw a 9.6% rise in the month of September with a sale of
1,092,262 units. The passenger vehicle sales also grew by 20.32%. The two wheeler market
was also augmented by 7.67% during the same period with a total sale of 838,150 units. The
same trade is applicable for the three-wheeler market, which saw a growth of 13.51% (with
sale of 41,137 units) during the same period.
Tata Motors
Tata sold 52,531 units of vehicles during September 2009, comparing to 49,647 units
during September 2008 (a growth of 6%). In domestic market, Tata Motors sold 49,650 units
during the same period, comparing to 45,234 units in September 2008
Maruti Suzuki India is an undisputed leader in the Indian automobile industry. Started
its journey in February 1981 as Maurti Udyog Limited, the company created history in the
Indian automobile market with its hugely popular four-wheeler model Maruti 800. The
company became the first Indian automobile company to manufacture one million vehicles in
1994. The company became Maruti Suzuki India Limited on September 17, 2007.
Maruti's average revenue for the year ending 2010-11 is US$7.13 billion. Maruti sold
83,306 units of vehicles in September 2009, comparing to 71,000 units in the same month in
the previous year (with a growth rate of 17.3%). It also exported 11,712 units during
September 2009, comparing to 6,318 units in the same month in the previous year (with a
growth rate of 85.4%).
After the recession, Hyundai Motor saw a growth rate of 25% in the domestic market.
During September 2009, HMIL sold 53,804 units, comparing to 46,218 units during
September 2008. In the domestic market, it sold 27,803 units in September 2009, comparing
to 22,311 during September 2008. The overseas sales during the same period also grew up
9% as it sold 26,001 units in September 2009, comparing to 23,907 units during the same
month in the previous year.
General Motors India Private Limited is another top player in Indian automobile
industry. A wholly-owned subsidiary of the auto giant General Motors, GM India saw a Y-o-
Y sales growth of 49% in September 2009 with a sale of 7,654 units, comparing to 5,154
units in September 2008.
In 2010, When Honda decided to move out of the joint venture, Hero Group bought
the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero
MotoCorp with a new corporate identity.
Hero Honda Motors Limited, the joint venture between Hero Group and Honda, was
the biggest two-wheeler manufacturers in the world. It shook the Indian two-wheeler market
with its famous model Hero Honda Splendor, which became the largest selling motorcycle in
the world. It consistently sold more than 1 million units of Splendors every year.
In 2008-09, Hero Honda sold about 3.28 million bikes and registered a net profit of `
1281.7 crore. It sold 4,01,290 units of two-wheeler in September 2009, comparing to
3,85,262 in September 2008. It already sold 11,83,235 units of two-wheelers in Q2 of FY10
with a growth rate of 21.7% against the corresponding period of the previous year.
Bajaj Auto
Bajaj Auto is the second largest two-wheeler manufacturer in India. It is also the
fourth largest two and three-wheeler maker in the world. In September 2009, Bajaj Auto sold
249,795 units of two-wheelers, comparing to 218,494 units in September 2008 (with a growth
rate of 14.3%). During September 2009, it also registered a growth of 12.4% in the domestic
two-wheeler sales and 19.9% in two-wheeler export.
Honda Siel Cars India Limited, a joint venture between the Japanese auto giant Honda Motor
Company Limited and the Indian company Siel Limited, started its operation in December
1995. In September 2009, HSCI sold 5,794 units, comparing to 3,104 units in September
2008 (with a growth rate of 86.7%).
Toyota Kirloskar Motor Private Limited is another top Indian automobile company. A
joint venture between the Japanese auto giant Toyota Motor Corporation and Kirloskar
Group, TKM has a number of car models including Innova, Corolla, Fortuner, Camry and the
Land Cruiser Prado. It sold 7,657 units in December 2009..
Hindustan Motors
Hindustan Motors is another top automobile company in India. It was once country's
largest car manufacturer before Maruti Udyog overpowered it. Its popular model
'Ambassador' has been extensively used as government limousine as well as taxi cab in India.
Auto marketers say this overwhelming dominance of a few players in a market, which
has 18 car and SUV manufacturers, is something peculiar to India alone. R S Kalsi, ED
(marketing & sales), Maruti Suzuki India, said, "There is no other example of this trend
anywhere else in the world and the highest marketshare by a single company, apart from
Maruti in India, is Toyota in Japan with around 30%."
Indeed, the top two's dominance of the market becomes obvious when one considers
that their incremental volumes are more than what some of their competitors sell in a year.
Rakesh Srivastava, senior VP (sales and marketing), Hyundai Motor India, said, "Last year,
our sales went up 16% to 4.76 lakh units in the domestic market and this incremental increase
is higher than the annual sales volume of 10 auto companies in India."
Experts say part of this is due to the early mover advantage and the ability to focus on
a solid distribution channel. Maruti Suzuki, for instance, has 1,750 showrooms and 3,000
workshops, while No. 2 player Hyundai has 1,070 showrooms, 370 used car outlets and 335
rural sales outlets.
But part of it also has to do with the existing car pool and the Indian customer's
comfort level with a product/brand that has strong resale value. Indeed the three years of
slowdown has reinforced the customer's tendency to go with what's tried and tested.
"Typically, Indian customers are willing to experiment during an economic growth phase, but
in a slowdown they stick to tested and trusted products," Srivastava said.
Indian automotive companies
Models currently manufactured by Indian companies
Maruti Swift in India. Maruti Suzuki is a subsidiary of Suzuki Motor Corporation of Japan Mahindra
XUV500, one of India's best selling indigenously developed SUV
Sipani Automobiles
Standard Motor Products of India
Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet
(of General Motors), Toyota, Lamborghini, Jaguar, and Skoda are the foreign automotive
companies that manufacture and market their products in India.
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle
servicing to existing Opel vehicle owners.
Nissan:GT-R.
Porsche: 997, Boxster, Panamera, Cayman, Cayenne, Carrera GT, Macan.
Rolls Royce: Ghost, Wraith, Phantom, Phantom Coupé, Phantom Drophead Coupé.
SsangYong (subsidiary of Mahindra & Mahindra): Rexton.
Toyota: Land Cruiser, Land Cruiser Prado, Prius.
Volkswagen: Beetle.
Volvo: V40, S60, S80, XC60, XC90.
AMW
Eicher Motors
Force
Hindustan Motors
Mahindra & Mahindra
Premier
Tata Motors
Hero Motocorp
Bajaj Auto
TVS Motor
The auto industry produced a total 19.84 million vehicles in April–January 2016, including
passenger vehicles, commercial vehicles, three-wheelers and two-wheelers; up from 19.64
million in April-January 2015. Domestic sales of passenger vehicles grew by 8.13% in April–
January 2016 as compared to the same period the year prior. Within the passenger vehicles
category, passenger cars rose by 10.18%, during April–January 2016 over April–January
2015.
The Government of India encourages foreign investment in the automobile sector and allows
100% FDI under the “automatic” route.
The government of India aims to make automobile manufacturing the main driver of
"Make in India" initiative, as it expects the passenger vehicles market to triple to 9.4
million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
In the Union budget of 2015–16, the Government has announced plans to provide
credit of Rs 850,000 crore (US$127.5 billion) to farmers, which is expected to boost
sales in the tractors segment.
The government plans to promote eco-friendly cars in the country—i.e. CNG-based
vehicles, hybrid vehicles, and electric vehicles—and also mandate 5 per cent ethanol
blending in petrol.
The government has formulated a Scheme for Faster Adoption and Manufacturing of
Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission
2020, to encourage the progressive introduction of reliable, affordable, and efficient
electric and hybrid vehicles into the country.
The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the
government is aimed at accelerating and sustaining growth in this sector. Also, the
well-established Regulatory Framework under the Ministry of Shipping, Road
Transport and Highways, plays a part in providing a boost to this sector.
This attracts lots of automotive suppliers in and around Pune to use sophisticated automotive
technology. Technology will enable this midsize market to communicate with automotive
leaders smoothly in their day-to-day manufacturing requirements.
Automotive Manufacturers (OEM) deal with tier 1, tier 2 or sometimes even with tier 3
suppliers depending on their procurement requirement. This requirement changes frequently
depending on market needs.
abas ERP offers seamless automotive utility to communicate procurement requirements from
automotive vendors to tier 1, tier 2 and tier 3 vendors.
The abas automotive tool addresses all following requirements for automotive vendors in
India.
Andhra
satyavedu hero MotoCorp Two wheelers
Pradesh
Commercial vehicles
Gujarat Bhuj Asia Motor Works AMW
modification
Himachal
Nalagarh TVS Motors Two wheelers
Pradesh
Himachal
Parwanoo TAFE Tractors Commercial vehicles
Pradesh
Madhya
Mandideep TAFE Tractors Commercial vehicles
Pradesh
Madhya
Pithampur Mahindra & Mahindra Two wheelers
Pradesh
Madhya
Pithampur Eicher Motors Commercial vehicles
Pradesh
List of automotive plants in India
Madhya
Pithampur Hindustan Motors Commercial vehicles
Pradesh
Hyundai construction
Maharashtra Chakan excavators
equipments
Pimpri-Chinchwad
Maharashtra Bajaj Auto Commercial vehicles
(Pune)
Pimpri-Chinchwad
Maharashtra Premier Automobiles Limited Passenger vehicles
(Pune)
Maraimalai
Tamil Nadu Ford India Private Limited Passenger vehicles
Nagar, Chennai
District
Uttar Pradesh Greater Noida Honda Siel Cars India Passenger vehicles
1. Financing Options
Auto industry observers cite car loans as the biggest driving factor for the expansion of the Compact
Car segment. At present, almost 85 per cent of all new car sales are backed by auto finance,
compared to 65 per cent five years ago.
Interest rates on car loans have come down drastically in the past four or five years, which helps
prospective buyers take the plunge. The growth of the CC-segment in the past few years can be
mainly credited to factors such as rise in income levels leading to increased affordability and
simultaneous reduction in interest rates leading to lower EMIs. The drop in interest rates usually
helps very few people to probably shift from the base model to a deluxe model. A larger shift
happens if people are willing to take long-term loans, like five years instead of the earlier three-year
loans.
And the companies are even trying to approach to the customer as to there demand for a vehicle at
special interest loans, etc. They are using data according to the customers return and earning
capacity for attracting the customers for there vehicles.
Since, in the compact car segment market even there are very less competitors there is stiff price
competition. Like the price of Zen in 2001 was Rs. 3.93 lacs which increased to Rs. 4.01 lacs in 2005,
but still the sale of the Maruti brand keeps on increasing it was due to the company’s reputation
with the customers.
5. Increase In Affordability
The demand for passenger cars is driven mainly by greater affordability, which in turn increases the
aspiration level of the customers. Today with high amount of disposable income in the hand of
Indian youth, who forms major portion of the population, PV market has larger addressable market.
6. Demographic Drivers
Cars being aspiration products, purchase decisions are influenced by the overall
economic environment. Increase in per capita income increases the consumption tendency of the
customer. Growth in per capita income and rising aspirations and changing lifestyle is leading to
increased preference for cars over two-wheelers, which is also having a positive rub off on car
demand.
8. New Offerings
9. Car sales increase when a new model hits the market. Due to escalation in competition in
Indian car market, frequency of new model launches has increased. In the past one year only the
Indian car market has seen many launches namely SX4, Swift Diesel, Zen Estilo, Spark, Logan, etc.
10. Exports
The share of exports from domestic production is currently at 12-13%, which is much lower than
current export hubs. Currently, India’s share of global passenger cars export volume stands at less
than 1%. But India is fast emerging as a manufacturing hub for leading global car makers, and several
manufacturers have already firmed up plans for setting up manufacturing bases in India, which will
also be used for exports.
Supply Factors
2. Efficient Operations
Competition in PV segment is very intense and this requires the existing players to initiate steps to
reduce their cost of production. Effective and successful operation methods like platform
commonality, reduction in vendor base and workforce rationalization can help a company
immensely
In the automotive industry where the market type is oligopoly, if one company drops its price for the
car, there is a huge impact on the sales of the other cars as well as the same car. In the market the
price of one car is inter-related to the price of the other cars in the same segment. The best solution
is that market equilibrium should be achieved so that the amount of the quantity demanded should
be equal to the amount of the quantity supplied to achieve maximum profits.
A Market Equilibrium is achieved at the point of intersection of the demand line and the supply line.
The point is the equilibrium point where the quantity demanded is equal to the quantity supplied.
6. Factors Of Production
There are some factors of production which influence the supply of a car like
Labour Cost
Machinery
Input Cost
These factors influence the supply of a car largely. If the cost of the raw material (Steel, Spare Parts,
Rubber) increases there will be an increase in the cost of production leading to decrease in profit
margins. Costs like labour costs, machinery and input costs also influence the supply with the
increase or decrease in these costs.
Recently the government has reduced the custom duty on inputs and raw material from 20% to 15%
which has increased the supply.